Amounts Amounts Awarded to TreasuryDirect Reduced for Recent Auctions
FOR IMMEDIATE RELEASE
February 19, 2002
CONTACT: Peter Hollenbach 202-691-3502
AMOUNTS AWARDED TO TREASURY DIRECT REDUCED FOR RECENT AUCTIONS
In the recent Treasury bill and note auctions, conducted during the week of February 4, 2002, noncompetitive tenders totaling $905 million were submitted, accepted in the auctions, and not paid for. The tenders were electronically submitted through TreasuryDirect. In addition, the tenders were submitted in a manner that violated existing rules on noncompetitive bidding. Controls were effective in preventing the bidder from receiving any securities, but the published auction results included these noncompetitive amounts. Additional controls are now in place to prevent a recurrence.
The yields, prices, and percentages allotted at the high rate or yield stand as previously published. This information is provided to clarify that the reported noncompetitive and total tendered and accepted amounts were overstated.
This matter is currently under investigation by Federal law enforcement authorities.
The table below shows the reduction in the amounts awarded to TreasuryDirect for each auction.
| Security | CUSIP Date | Auction Date | Issue Awarded to | Reduction in Amount TreasuryDirect |
|---|---|---|---|---|
| 13-week bill | 912795JT9 | 2/4/02 | 2/7/02 | $84 million |
| 26-week bill | 912795KV2 | 2/4/02 | 2/7/02 | $76 million |
| 4 ¾ year note | 9128277F3 | 2/5/02 | 2/15/02 | $375 million |
| 10-year note | 9128277L0 | 2/6/02 | 2/15/02 | $370 million |
PA-541